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Harbor Reserve will accept a project submission from an agent-broker who acknowledges, by signing the Project Acceptance Application, that he or she has read this page and understands Harbor Reserve's methods and procedures. An approved broker will be protected at funding.
Harbor Reserve will only accept a Project Acceptance Application submitted and signed by a principal or the principal's legal counsel.
Harbor Reserve provides very thorough information through this site, receives many funding requests, and acts promptly in conducting initial project evaluations; therefore, there are short deadlines once a Project Acceptance Application is submitted. Submit an Application only after you have studied the information at this site and are ready to proceed in the event your project is accepted by Harbor Reserve. Any project that is submitted more than once will not be considered by Harbor Reserve unless it is accompanied by a $1,500 re-application fee.
Harbor Reserve will only review or consider a project for which it has received a completed Project Acceptance Application, the available supporting documents itemized in the Application, and the $1,000 application deposit. The application deposit is designed to eliminate frivolous applications and will be promptly returned to you if Harbor Reserve does not accept your project or applied to the project evaluation fee if Harbor Reserve accepts your project. The Project Acceptance Application is available in PDF format through the following link: Project Acceptance Application.
A list of possible supporting documents is found in the Project Acceptance Application form; however, an offering memorandum or business plan is preferred. Because Harbor Project Company ("HPC") funding is project-based you will not be required to provide a personal financial statement, a credit report, or personal tax returns. Documents that cannot be delivered by email or fax should be delivered to Harbor Reserve's Washington, DC, office.
After you submit your Project Acceptance Application, supporting documents, and application deposit, Harbor Reserve will evaluate the project data, may request additional information or a modification of proposed investment terms, and will then provide a brief synopsis of the project to investors. Within approximately 7 days you will receive (a) a report showing the number and type of investors who requested further information about your project and (b) Harbor Reserve's acceptance decision. If your project is accepted you will have up to 7 days to sign and return the Acceptance Contract.* If you do not sign and return the Acceptance Contract within 7 days you will lose your application deposit.
*To review the Harbor Reserve Acceptance Contract form click here.
During the first 15 days after you sign and return the Acceptance Contract, or longer as reasonably necessary given the circumstances of the project, Harbor Reserve will conduct a thorough evaluation of your project, including an on-site inspection of the project, prepare the Harbor Project Company, and prepare a presentation of the offering for the investors. This investment presentation will incorporate the sponsor's offering memorandum, business plan, and/or other project documents.
During the "placement phase" the HPC, acting through Harbor Reserve, will work to raise money from Harbor Reserve registered investors. "Placement" is not guaranteed. If Harbor Reserve believes it has placed the investment and/or loan the HPC will issue a letter of intent ("LOI") and/or letter of conditional commitment ("LOCC").*
*If the HPC is unable to raise the necessary capital it may present the opportunity to "outside" institutional investors such as private equity funds; Harbor Reserve has a very large network of institutional investors. If you accept outside funding arranged by the HPC, the HPC will own 10% of the project. You may buy-out the HPC by paying 5% of the funding amount at the time of funding.
Once the HPC has raised the necessary capital you will receive a term sheet, letter of intent to proceed with an equity investment, and/or a letter of conditional commitment to proceed with a loan. The term sheet(s) and/or letter(s) will include a recital of the investment or loan terms, any conditions, and any expenses. The terms presented may be different than what you initially proposed in the Project Acceptance Application; however, you will have the unrestricted option of proceeding or declining to proceed under the terms as presented.
After you approve the terms, the HPC and any other investors and/or lenders will conduct a due diligence investigation of the project. The due diligence process can usually be completed by the HPC within 15 days unless there is a delay caused by a third-party contractor (e.g., appraiser).
An investment contract and/or an unconditional loan commitment will be submitted by the HPC and any other investors/lenders once final due diligence is complete.
The equity and/or debt investment will be finalized at a closing generally within 10 days of an investment contract and/or a loan commitment.
All project submission and investment information is kept confidential. Neither Harbor Reserve nor the Harbor Project Company will release information about investors, investment companies, or transactions.
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